We often lack a small amount of money before our salary or have an unforeseen expense. You don’t want to borrow from family and friends, and that’s where a loan can help. Many people know what an online “payday loan” is or have taken it to get to the day when the money comes. However, few people understand how it differs from a faxless payday loan. What are faxless loans and how do they work? We will analyze it in this article.
What are fast payday loans and how do they work?
It is a loan given to consumers for a short period to cover immediate expenses. We are talking about 1000-1500 dollars that should be paid back within the time frame set by the lender. They are often issued for 1-2 weeks at a high interest rate and depend on the borrower’s paycheck.
The procedure for approving a client’s application is usually quick and straightforward: the client must answer a few questions about himself and his income. The money is transferred to his bank account as soon as it is approved and the borrower accepts the contract terms. The consumer will know exactly all the sums and be able to calculate the size of the repayments.
In many cases, it is allowed to repay such a loan early. However, it is important not to delay repayment. Otherwise, the money will be withdrawn directly from the bank account that the client used to receive the funds. It is also necessary to consider the bank’s commission so that the user has enough money for the repayment.
The concept of a “faxless loan”
It is the same as a traditional one, but the documents that must be submitted to the lender can be sent electronically instead of by fax. The lending organization receives the necessary information within minutes, and approval is given to the borrower within a few hours or even sooner. By contacting the same lender repeatedly, clients with a clean history can no longer send their documents but go straight to the loan approval, which is very convenient and saves valuable time.
Loans of this type are designed to make it convenient for the client to apply online and get approval quickly. The screens of documents are sent electronically by mail or messenger.
All modern online lenders that offer users small amounts of money before payday can be called faxless lenders because they are not tied to office equipment. With the advent of the Internet, a customer can quickly scan documents and send them via email at any convenient time. Every serious financial company accepts applications and documents online. Still, you can also visit their office in person and provide hard copies of all the required documents, as per the client’s request.
Why do users often choose short-term loans?
Borrowers apply for a payday loan because they do not have enough financial resources to live on or have urgent unforeseen expenses.
Like all other loans, such loans have advantages and disadvantages, which you should consider if you decide to turn to an online office, not to friends or relatives. Let’s consider them in detail.
The advantages are as follows:
- the application process is as simple as possible;
- all processes take place in an online format;
- loan amounts are small;
- approval is fast, and the percentage of approved applications is quite high;
- money comes to the borrower’s card on the same or next day;
- the client knows in advance exactly how much over the loan will have to pay the bank;
- you can manage your finances on the lender’s website in a virtual personal cabinet.
Some disadvantages include high interest rates: about $15 per $100 borrowed, almost 400% annual interest, and the need for timely repayment, which keeps the borrower in psychological tension. It is also possible to fall into the trap of short-term loans, where you must take out a new loan to pay off the previous one.
Before taking out a payday loan, every potential borrower must determine whether he can’t do without it. Then, choose a lender with the best terms and evaluate your repayability. Such a service can help if you resort to it from time to time when you urgently need specific amounts to solve critical issues, and you are sure you will be able to pay them in time.